Chapter 5.class.notes

Chapter 5.class.notes - Chapter 5 – Consumer Behavior In...

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Unformatted text preview: Chapter 5 – Consumer Behavior In this chapter, three key concepts or topics should be learned: • The first is the overarching model of consumer behavior, a model that serves as a guide to most of the chapter. Simply stated, if you understand the model, and its components, then you understand most of the chapter. (If you don’t, you don’t.) – See Figure 5.4 • The second is the array of factors that exercise influence on consumer behavior, and that thus should be accounted for and managed (to the degree that a given factor can be managed) by marketers. • The third is the five stages that comprise the consumer [buyer] purchase decision making process. See Figure 5.1 o Each concept is deep, and complicated in its implications. Key Thoughts – • Today, capitalism is defined not by a producer mentality but by a consumer ethos. The prosperity that until recently we saw and experienced was in some respects an economic mirage, purchased with a credit card. Until recently, U.S. consumers were continuously buying more and more stuff they cannot afford. o Marketing and consumer behavior implications o Rational people respond to incentives . (But they don’t all respond to the same incentives, do they? When doing something or buying something becomes more costly (in terms of money, time, inconvenience, stress or perceived/actual risk) than doing or buying something else, which “something” do you believe most consumers are going to buy or do - if they are rational? When something becomes easier, less expensive or more beneficial, they will do or buy 1 more of it – if they are rational, right? But in weighing these choices, people will bear in mind the overall constraints pressing on them, not just the costs and benefits of a particular choice – if they are rational. And they will also consider the future consequences of the present/current choice, I f they are rational. But who is rational, all the time, in their behavior as consumers? The study of, and an understanding of, consumer behavior – it is no ‘slam dunk.’ • “People buy things to realize their aspirations – that’s the foundation of our business”, taken from the award winning show ‘Mad Men’. DEFINING CONSUMER BEHAVIOR (commonly known as “CB”) – • CB – refers to the buying behavior of final consumers . CB also refers to the factors that influence the buying behavior of final consumers . o Final consumers are best described as individuals and households who buy products or services for personal consumption. Marketers study CB: • To no small degree marketers should study CB in the same manner and for the same reason that fisherman study fish … to learn how best to ‘catch’ them....
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This note was uploaded on 03/12/2011 for the course MKTG 3650 taught by Professor Thompson during the Spring '08 term at North Texas.

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Chapter 5.class.notes - Chapter 5 – Consumer Behavior In...

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